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any factors go into the type of hot beverages operators provide in a micro market. Coffee and coffee-related offerings depend on an operator's region and their previous OCS history; they also depend on the type, size and demographic of indi- vidual locations. There is no standard yet on ways to maximize hot beverage sales in a micro market and the major- ity of operators are struggling to fnd the best solution for their micro mar- kets. One thing many operators agree upon, however, is that hot beverage offerings provide an opportunity to drive micro market sales. What type of operator are you? Although there is not yet an indus- try standard in terms of offering hot beverages in micro markets, the seg- ment should not be overlooked. Brad Bachtelle, president of Bachtelle and Associates, fnds that coffee pro- grams vary widely between micro markets and are often based upon the type of coffee available prior to the installation. Multiple approaches are being utilized effectively around the country by operators including the use of single-serve brewers, hot beverage vending machines and liq- uid coffee equipment. Nearly every large business and industry location has coffee available in some form prior to a micro mar- ket installation, generally either OCS offered on a no charge basis to employ- ees or a single cup, vended product. Considering this, when a micro mar- kets is installed, Bachtelle fnds that coffee is generally handled in one of four different ways. Option 1: No micro market coffee The pre-micro market OCS system is retained as the sole option for loca- tion coffee, often providing fresh- brew coffee at various points at the account and with no incremental cof- fee program within the micro mar- ket. The "no micro market coffee" is the lowest micro market hot beverage volume environment. Option 2: Augmented OCS, employee paid Retention of the prior OCS system as it existed, augmented within the micro market by the installation of an employee-paid upscale, multi- variety, coffee system. The popularity of upscale, quality coffee shops has proven that consumers often prefer a better coffee product, and will pay for better or different coffee blends as well as other types of hot beverages. Option 3: OCS in market, company sponsored Addition of micro market coffee as an OCS inclusion funded by the location and at no charge to the employee. This provides the highest micro market hot beverage volume, but with increased employer cost. Option 4: Upscale OCS, employee paid Replacement of the prior OCS and/or coffee vending with an upscale sys- tem installed within the micro market area all provided on an employee-paid basis. Where vending existed, it is a relatively easy and direct conversion with perhaps an increase in per-cup costs justifed by the higher coffee M Use coffee to boost micro market sales By Adrienne Zimmer, Managing Editor There is no set standard for hot beverage delivery in micro markets, but operators agree it is a segment that continues to grow. '' When you offer people a good hot beverage in micro markets, they will pay for it. '' 20 Automatic Merchandiser VendingMarketWatch.com April 2015 O C S U P D A T E